The Securities and Exchange Commission has charged a Michigan hedge fund manager with lying to investors about big investment losses.

According to the regulator, Azure Bay Management’s Daniel Jones told investors that one of his funds had $2.1 million in assets. In reality, the SEC alleges, there were just $200,000 in assets left, which a federal court has now frozen.

In spite of the fund’s losses, Jones allegedly still charged investors some $135,000 in management fees.